Accounting-exchange.



W. F. KEMBLE & C. R. UNDERHILL.

ACCOUNTING EXCHANGE.

APPLIOATION FILED FEB. 3, 1908.

1,062, 102. Patented May 20, 1913.

WiTnesses UNITED STATES PATENT caries.

WILLIAM F. KEMBLE, OF BOGKAW'AY BEACH, AND CHARLES R UNDERHILL, OF YONKERS, NEW YORK, ASSIGNCIRS, BY DIRECT AND MESNE r-ifiSIGNMENTS, OF ONE-HALF TO CHARLES S. GHAMPION, OF RIDGEWOOD, NEW FJERSEY.

ACCOUNTING-EXCHANGL Specification of Letters Patent.

Patented May 20, 1913.

Application filed February 3, 1998. Serial No. 414,001.

Queens, State of New York, and Yonkers,

in the county oftlVestchester and .State of .New York, have invented a certain new and useful AccountingExchange, of which the following is a specification.

This invention relates to an accounting exchange for determining by suitable apparatus the, settlement of accounts between- .difi'erentpersons: firms, etc.

" provide apparatus for determining quickly The main object of the invention is to and accurately what persons, firms, etc., who

, are members of the exchange, have accounts owingato them or due others that can be offset, balanced or settled by accounts of f oth'er members of the exchange due to or owed by such other members.

In general, the object of this invention.

is to provide suitable machinery for quickly and accurately effecting a settlement or" all accounts in a single community or 1n a large number of communities having accounting relations with one another, and vfacilitating .the settlement of all accounts without recourse to the payment of money, or the making of checks and similar negotiable instruments for the purpose of settling accounts. Fundamentally, the invention is Y applicable to the settlement of all accounts of all communities, whether confined to town or city accounts, or extended to State,

national and international exchanges.

Thesum of the'accounts which the intllVldlltllS ofa community owe and of the accounts which are due to the individuals of a connnunity,-though large, usually offset I each other to a large extent, because the 1ndividuals of the community are chiefly engaged in work for or trade with one another. F or this reason it is not necessary that each in account with another make payment to or receive payment from that other in order to settle the account. It is only necessary that the accounts payable be oli'set as far as possible against the accounts receivable in such a community in any way whatever that will permit the settlement of such accounts in full, in order that the greater portion, and indeed usually substantially all,of the accounts of that community, may be settled. We deem it desirable, however, 1n offsetting debits and credits of a community against each other,

No. 2 a given amount, and No. 2 owes No. 3

the same amount, and No. 3 owes No. 1 a like amount, it is obvious that by pairing Nos. I and 2, Nos. 2 and 3, and Nos. 8 and 1,

we obtain three accounting pairs which when associated constitute, an accounting group, chain or circuit in whichall of the accountsof Nos. 1, 2 and are offset against one another, and throng the completion of which all of the accoiui s of Nos. 1', 2 and 3 with one another may be settled and closed. hen, however, No. I owes No. 2 a given amount, and No. 2 owes No. 3 a diiierent amount, and No. 3 owes No. 1 an amount different from either of the other two amounts, it is clear that while three accounting pairs are formed as before, and are associated as before to form an ac counting group, chain or circuit, it is not possible to settle and close all of the accounts of Nos. 1, 2 and 3 with one another,

but that it is a simple matter to settle the lowest amount due to or receivable by any one of the three from another. ,Vhen such a partial. accounting is made, it is also obvious that the balance may be settled, partially'or wholly, by bringing other members of the community, such as Nos. l, 5,

etc, into accounting relation with lf os. l,

2 and 3. Thus, by having a large number of members of a community in account-mg relation with one another a very large percentage of the accounts of that community may be settledquickly without necessitating; any payment by any individual to another, and without the passing ol. any money, check or equivalent negotiable instrument, it being merely necessary to determine which members'of the community can be brought into accounting relation with one another in such a manner that their debits and credits when aggregated will, to a large extent, cancel each other.

In the present invention we have provided machinery suitable for readily carrying into effect such a method or system of accounting. The means employed and the manner in which. the apparatus may be constructed,organized and operated, may be varied within wide limits, but in all cases the means used will be capable of bringing into accounting relation in the apparatus debit and creditaccounting components of such a nature as to be capable of being brought into operative relation with one another to fornain the apparatus accounts ing groups, chairs, or circuits, through me chanical, electri' l or equivalent agencies, each debit and credit component representi ing in such a system an account owed by or payable to the individual onmember to whom said components correspond. The preferred apparatus or systemicmployed by us for settling the accounts of a community, or of many communities, in accordance with the principles just stated, is an ahcounting exchange in which each memberof the exchange is represented by a set of accounting components containingone or more debit components and one ,or more credit components, and in whic i preparatory to offsetting as far as possible," a debt owing by one member to anoth'r agp debit component of such first member is first brought into accounting relation with a credit com ponent of such. other member, to indicate an accounting relation between these two members of the exchange. Such a debit component of one member when associated with a credit component of another member forms with said credit component an accounting pair. These two components forming parts of the apparatus represent statements of account which may be placed in files or racks associated with the debit and credit components of the system, but

need form no part of the exchange itself.

The sets of accounting components comprised in the exchange will be as many in number as there are members of the exchange, each set having its appropriate debit and credit components, with the. sets preferably arranged in series, the debit components in one series and the credit components in another, as a matter of convenience. Any desirednumber of pairs (more than one) of debit and credit comonents of different sets may be established y suitable means for lassociating or com necting in the exchange debit and credit components of different sets, and the pairs' so established may also be associated or connectedin any suitable manner to bring about an accounting relation of a large s with one number of such accounting another. 1n order to establi.

or complete in the exchange an accounting chain or circuit, as distinguished from an accounting group made up of several accounting pairs, it is necessary to bring into accounting relationship with one another a plurality of accounting pairs in which the first and last elements of the accounting pairs so established in the exchange are debit and credit components of the same set. Such a. chain is established whenever a series of accounting pairs is completed, as in the example before referred to, viz., when three accounting pairs are completed consisting of components representing Nos. 1 and 2, 2 and 3, and 3 and 1. Obviously it is a matter of no importance which members of the exchange have the opposite accounting components representing them connected in pairs and then in a chain, it being only necessary that a complete accounting relationship be established in the exchange from the point of beginning through the series back to the point of beginning. Ina system of this kind it is believed that all of the opera tions can best be controlled electrically, for which reason prefer to embody the invention in an electrical accounting exchange Which, as. at present embodied, contains a series of sets of electrically-difl'erient to make use of devices and connections similar, generally speaking, to. those employed in telephone exchange work, such for example as plug-and-cord connections for bringing about the necessary electrical relations between differentiated components of different sets. We prefer to employ such connections as these for completing accounting pairs in the exchange, the making of the connections for such pairs being substantially similar to the making of connections between telephone subscribers in a. telephone exchange. By'means of such connections any number of accounting pairs necessary to a given accounting chain or circuit.1nay be temporarily established in the exchange, and through them also the different accounting p'airs may be connected with one another, and a closed path or circuit formed for the passage of the electric current, which path or circuit may be energized in any suitable way. In the system which will be particularly described, in the a cuit, the current being supplied to such circuit after the closure of the same. The ele ments of the system are so related to one another, however, that as many different temporary accounting circuits may be formed in. the exchange, one at a time, as there are permutations of the whole number of debit and credit components of the series actuallyused in any given exchange. In this respect, it will be noticed, our accounting exchange differs radically from a telephone exchange. In a telephone exchange it is customary to make connections between ter-' minals representing only two subscribers instruments; whereas in our accounting exchange connections may be made which Will close a circuitjthrough any number of accounting sets\fr'om two up to the total number in the exchange.

l'Vhenever an accounting chain or circuit is established in theapparatus of the exchange by any instrumentalities in accordance with our invention, the fact should be indicated, in order that it may be easy to determine at a glance just which members represented in the exchange are in accounting relation with one another. It is preferable to indicate not only the fact that such an accounting chain or circuit has been formed but also the particular accounts which, or members who, are in accounting relation. This ,will be done in any suitable way, but preferably by small electric lamps similar to thos ised in telephone exchanges,

oneof which will preferably be associated,

with each accounting set'in the exchange. W i th such/an organization of the parts an indicator or light will show for each accounting set in circuit whenever such an accounting circuit is closed in the exchange, and thus it, will be seen at once that such a circuit has been closed, and also between what accounting sets in the exchange said circuit is established. It being understood that every connection between a debit component of one set and a credit component of another set will be effected because of the existence of an account between the members represented by such sets, and usually because also of the existence of a balance in' favor of the member represented by the credit component; and it being further understood that when a circuit is established through the components representing any two or more members of the exchange, all

of the accounts corresponding to the'accounting pairs of the circuit will be conveniently located for reference, it will be seen that the labor of determining when an accounting circuit exists comprising a plurality of members, especially when this circuit includes a very large number of members of an exchange, will betransferred from the book-keeper or book-keepers, who would have to pcrform-t-his work in the absence of mechanism for determining such 'cision, is the most important reason for the embodiment of a system of accounting of this general nature largely in mechanism.

This mechanism, especially when, in the form of an electrical accounting exchange, is capable of performing with case all of the difficult, intricate and laborious tracing of accounting relatlonships, among a large number of persons, firms, etc., a Work which it would be extremely difiicult, and in practice probably impracticable, for book-keepers to do by mental effort alone. I

Other features of the invention not here inbefore referred to will be hereinafter described and claimed and are illustrated in L110 accompanying drawings, in which- Figure '1 is a diagram illustrating with few elements as possible, to avoid confusion, an electrical accounting exchange'of a very simple type embodying our invention and the main features of an electrical accounting exchange such as on a larger scale will be used in actual practice. Fig. 2 is a diagram illustrating the indicating means for showing the completion of an accounting circuit.

Similar characters designate like parts in all the figures of the drawing.

In the accounting exchange illustrated in the drawings as an exemplification of the invention, we have shown a pluralityor series of sets of accounting components each of which sets has at least one debit component and at least. one credit component. These components are illustrated graphically by circles, and may be any mechanical, electri-.

cal or other devices suitable for association or connection in the exchange in such a manner as to bring about a cooperative relation among a plurality of accounting'pairs to form an accounting group, chain or circuit.

For the sake of simplicity only four sets of these components are illustrated in the present case, the debit components being designated by 1, 2, 3 and 4, and the credit con1ponents by 1', 2', 3 and 4. As actually illustrated as parts of an electrical accounting,

exchange these debit and credit components are suitable means, such as plug-andcord connections similar to those used in telephone connections, for connecting debit and credit elements of different accountmg sets to form an accounting pair. In Fig; 1.-

wherever dotted-line connections between debit and credit components are illustrated these represent a temporary electrical connection actually established, as by plug-andcord connections, in-a manner well understood in telephone work. Where no dottedvline connections are shown the debit and creditcompo-nents from which dotted lines do not lead are not in accounting relation with any other accounting set, and the cord is in its normal position out of use. The debit and credit components in an =.==3trical accounting exchange should be electrically I differentiated from each other in some suit- I able manner. The simplest way to diflerentiate them is placing the debit components in one side of an electric circuit, and the credit components in the other. side, the debit components being here shown and marked as positive and the credit compo- 'nents as negative.

Assoc1ated with each md-lvidual set of accounting components in an electrical accounting exchange will preferably be some indicating mgans for signaling or showing when an accountm relation has been estab- 'lished'among the e ements of an accounting group, chain or circuit. This means is provided for the purpose of obtaining a practic-ally instantaneous indication by and in the mechanism of the exchange of the completion of such group or circuit, and this in dlcation when it appears may serve as an .in Fig. 2.

not actually constituting an order to an attendant to inspect all the accounts so brought into accounting relation with one another and settle one or more of them, or all if possible, according as one or another mode'of effecting settlements is employed in connection with the exchange. lhe method preferably employed in connection with the exchange actually illustrated is the settlement of the lowest of the several accounts thus brought into accounting relation with-each other or with one another.

aneleetric circuit through a plurality of ac countingcomponents not actually in true accounting relation with one another, that is, accounting group representing accounts that can be "partially or wholly offset or settled in the .mannerbefore described. For this reason,

-jwhile suitable indicating or equivalent or v other meansfor calling attention to the es- ,tab lishln ent of an accounting group or cirshown are designated respectiveiy by 5-43,

tacts are connected to suit cuit is essential, it is hardly to provide means for preven of a false indication or signal For this reason we prefer to e indicating or equivalent means ele tive means or devices which 7" y, ample, indieateonly elc ing one particular characteris v not indicate forelectric current other characteristic, even should happen to flow thrc. means connected in a closed eh. We have shown herein,

polarityand unrespo other polarity even it it flows thro means.

\Vhile a sin le indicating me. us '0 of any of the general types just meat dcem sufficient for the purpose at d an accounting group or circ it is pref a le in all .o eating me; or each set of ponents in the accounting exchans that an attendant may at only that an'aecounting circuit has b tablished, but throughjust winch W of the exchange the group or ci ca. formed. The lamps l 2* ar t Fig. 2 con-spend to the accor illustrated by the debit and or nents 1-1, .2-9" and means being illustrated in counting set 3-3' for the Fig. 1 no connection is made debit or the credit componen any other set. i

The primary elements of ti indicating means just mentic: appara tus here illustrated polarized tromagne'ts, which are de sled.

ively by 1", 2, 3" and polarized magnet shown movable armatures simiiarly polar being positive in the construction i. When current flows through new one of these electromagnets indicated by the arrows in in obvious that the armature a; be attracted.'-\vhile the armature I will be repelled {both armatmcs bei-;-.g new ally held awayirom the poles or the mag net by springs, shown), and that this movement of the right-hand armature may be used as a means for closing an indicat' g circuit. The armatures of the magnets ated with Asst:

78, 910,- and ll--12.

each of these armatures is a contact from the com uetors lrough the or a: conmeaus for I preventing the lighting of the lamps, as for example by opening the circuit thereto. The contacts which are connected with the conductors for preventing lighting of the lamps are designated respectively by 13, 14 and 15.. while those which are connected directly in the lamp circuits are designated respectively by 16, 17 and 18. 13, l4 and 15 are all connected to a common conductor 19 leading in this case to'a relay magnet'20 having an armature 21, while the contacts 16, 17 and 18 are connected individually to the lamps 1 2 and 4, which in turn are connected at their opposite terminals to a common conductor 22 leading to the contact 23 of said. relay. The positive,

sides of the polarized magnets are 'all connected to a common conductor 24 leading to a source of energy, such as the battery 2:).

. The other side of this battery is connected to the conductor 26, which leads to the armature 21 of the rel ay, from which a conductor 27 leads to the other side of the relay from that to-which the conductor 19 is connected. lVhen current is passed through the coils of the polarized magnets in the direction shown by the arrows in Fig. 1 it will be evident that the armatures 6, 8 and 12 will attracted and circuits closed through the lamps 1, 2 and 4 from the source of energy 25,.as all of the breaks at 16, 1-7 and 18 will be closed by the attraction of the armatures 6, 8 and 12. and the gap at the relay between 21 and 23 is always normally closed. This permits the current to pass through all of the lamps in the circuit to light the same and indicate not only that an accounting group or circuit has been established but that the members of the exchange who are in accounting relation with one another are those represented by the lamps l 2 and 4, that is to say, members one, two and three of the exchange illustrated in Fig. 1. On the current flowing through the coils of any one or more of these polarized magnets in the opposite direction to that indicated by the arrows in Fig. 1, it will be seen that the polarities of the magnets being reversed the armatures 6, 8 and 12, or some or them, will be repelled instead of being attracted, and the armatures 5, 7 and 11, or some one or more of them (if current flows in that direction through less than all of them), will be attracted and a circuit closed through some one or more or all of the contacts 13,14 and 15, whereupon the relay 20 will be energized and the circuit of the lamps 1, 2 and 4 opened at the contact 23 by the attraction of the armature 21. This will prt t the lighting or any lamp and the conse ant giving of a false indication it will beclear that so long as the 2, 17 18' are open the lamps unl tec if the circuit be The contactstoprevent the giving of a false signal when all but one of a group of accounting sets are in proper accounting relation, in which case current might properly pass in the direction indicated by the arrows in Fig. 1, through all but one of the polarized magnets of the group, it is important to provide some device, such for example as the relay shown in Fig. 2, common to all of the accounting sets, which will prevent the giving of a signal through any of the signaling means if an improper current flows through any single individual indicating device.

Referring a ain to Fig. 1, While [any proper means may be employed for bringing into accounting relation accounting pairs that have actually been established in the exchange by the bringing into acoountin relation of debit and credit'that is, positive and negativecomponents of different accounting sets, we have shown in that figure, as a simple and convenient means for accomplishing the desired result, electrical conductors permanently connected to positive and negative contacts,'throughwhich current may be passed. In other words, we prefer to permanently connect the positive component, (which is here shown :as the debit component), of each accounting set to one positive contact or terminal ota group of positive contacts or terminals, and to pcrmanently connect each negative or credit component in a similar manner to one nega-v tive contact or terminal of a group of negative contacts or terminals complementary to such positive contacts or terminals. Con-"- ductors connecting the positive components and positive terminals, are indicated at 28 and 29, and conductors connecting negative components with negative termlnals are indicated at-30 and till. A series or circuit of I positive terminals is shown in Fig. 1, the individual elements being designated by .32 to 43 respectively, While cooperating with these is a correspondingseries or circuit of negative terminals, designated by 32 to 43' respectively. These two sets of positive and negative terminals are preferably centered around the axis of circuit-controlling means, such as a rotary switch-arm, indicated in dotted lines at 44, which preferably carries positive and negative contacts 45 and; 45, connected by conductors, such as 46 and 47 to positive and negative terminals 48. and 49, these being preferably connected in turn with a source of energy such as 50, in any suitable manner, through connections, however, whichrarc always closed so as to permit passage of current from said source of,

energy.

The positive and negative contacts 45 and 45 are in the construction shown embod ed in an insulating head 51, which ispreferably' knife-edged and adapted tetra e1. n a pa h betwe thepositiveandnegatiyecontacts-13d therewith any closed accounting circuit would be a dead circuit, that is, one consisting merely of ametallic conducting path closed on itself but traversed by no current.

It will be clear from the foregoing that an accounting pair is established in an electrical exchange, such as shown in Fig. 1, by merely connecting one polarized magnet, temporarily, and one component of its set with the opposite component and opposite side of the olarized magnet of another set, and that W en an accounting pair is thus formed any two or more of such accounting pairs constitute a complete accounting circuit ifthe first and last elements connected are debit and credit components ofthe same set. Thus in Fig. 1 a complete circuit can be traced from the polarized magnet of the first accounting set through the magnets of the second and fourth sets back to the point of beginning, this circuit being a dead accountlng circuit until energized by the automatic opening of one of the three pairs of positive and negative contacts or terminals .through which the circuit is partially established. It will be noticed that each account ing pair in this circuit comprises a polarized magnet, adebit component connected to one terminal of said magnet a credit component connected to the other terminal of said magnet, connections from said debit or positive component to a positive contact or terminal of onetpair, and connections from said credit or negative component to the negative contact or terminal of a different pair. \Vhenever current is introduced into such a dead accounting circuit, as by the opening of any pair of terminals by the insulating head 51 of the rotary switch 44:, and the electrical connection momentarily of contacts 33-45, and 33'-45', a closed electric circuit results, through which current from the source of energy 50 passes, energizes all of the polarized magnets in circuit in the same manner, and'closes all the lamp circuits corresponding to'said polarized magnets in the manner before described/ Many variations of the arrangement of debit and credit components described in detail may be made. One is illustrated in Fig. 1, from which it will be seen that the-fourth set is permanently connected on the main board of the'exchange by plug-and-cord or other connections, and these debit and credit components connect d in turn with two series of debit and credit components on a smaller switch-board at the right of the main board.- This m'aller board represents" liflfll xmunber of accounts of'the iom'th member of the exchange with other parties. The different accounting sets are. indicated by 4, P, P and 42. This board differs from the main board. in that the positive side of all sets may be connected directly with the positive component of No. Four on the main board, and the negative side of all sets correspondingly connected. with the negative component of the fourth member on the main board. This variation in organization, however, embodies no de arture from the principles hereinbefore set orth.

While the main switchboard is illustrated as having only four sets of components, twelve pairs of positive and negative terminals are illustrated, in order to indicate that the system will always have a considerable number of pairs, and that it is capable of great extension as compared with the simple exchange board illustrated in the present case. A further object of" illustrating a considerable number of pairs of terminals adapted to be opened in succession by an automatic switch, such for example as that shown, is to permit the illustration of means for properly balancing the resistance of a circuit which may contain at difi'erent times either a large number or a smaller number of polarized magnets, each wound with coils of considerable resistance.

In order that the resistances of all accounting circuits through which current may flow individually from time to time may be kept within proper working limits, we provide means, preferably controlled .by the resistance of any energized accounting circuit which may be closed, for automatically cutting in or out resistance in accordance with the requirements. The terminals l8 and 49 leading from the automatic switch are connected in a closed partial electric circuit which includes in this case not only the source of energy 50, but also resistances capable of being automatically cut in or out according as the resistance of the polarized magnets in circuit is little or great. Here three relay magnets 51, 52 and 53 are shown "connected electrically in series with one another and with said source of energy 50. Their terminals are indicated at 54, 55 and 56. The armatures of the first two are normally on their contacts 57 and 5S, and through them are connected in series directly with the relay and the source of energy. When,- however, a heavy current flows through the circuit including said relay owing to the presence in the circuit of a small number of polarized magnets, one or both of the relays 51 and 52 which, it should be stated, are of different resistances, may be energized by the current in the circuit, in which case one or both may attract its armature or their armatures according as the strength of the current is little or much above that required to saturate the magnets.

KGSISTZLHCGS, such as 59 and 60 are connected in shunt with the armatures and their contacts, these being also preferably different.- From this organization of the relays and the shunt resistances 59 and 60 it will be seen that the resistance in circuit between the automatic switch and the battery may be either that of three relays connected in series or that of said relays plus one or both of the shunt resistances 59 and 60. In a large exchange any necessary extension or variation may be made of this principle of maintaining the resistance of the energized accounting circuits approximately uniform.

Whenever an accounting group is established or an accounting circuit closed in the exchange we prefer to stop the operation of the-automatic means just described for tracing, out the fact and making the neces-' sary cooperative or-elect-rical connections. This automatic stopping means may be a simple uncoupling device, such as 61, .cooperative with corresponding clutch members 62 and .63, and controlled by the arma.

ture of a relay 64 in a local circuit gow erned by the relay 53. This local circuit, as here shown, comprises merely the coils of the relay 64, a source 0' c rgy 65, the armature 56 of the relay 133., and the contact 66 of said relay, all connected by suitable conductors' The automatic stopping act-ion obviously takes place instantaneously when the relay 53 is energized. The devices shown are intended to stop the rotation of the switch-arm 44 secured to the shaft 67.

The app: atus hereinbefore described is sufficient for establishing accounting pairs and accounting circuits, but it is not sufiicient to .test each accounting set to deterinine whether it is in accounting relation with any other set. In order to effect this testing We may employ positive and negative testing-arms, such as 68 and (59, the former of which rotates at considerable ,speed and moves successively over a series 'of positive contacts, such as 70, corresponding to the positive terminals, while the arm 69, by means of suitable mechanism (not shown) moves in the same direction, has a .-niovement of one step for each complete.

rotation of the arm 68, and moves over a complementary set of negative contacts 71, each of which is permanently connected by a short conductor 7 2 with the correspond ing positive contact 70. Through this automatic testing apparatus, the arms of which may be mounted for movement about the same axis as tl e switch-arm 44, all of the ,accounting sets to which said testing con- ;tacts correspond, may be constantly tested to determinewhether anyone of them has any accounting relation with any other set. even if such set is not brought into an accounting circuit. .1 I a): We have not illustrated herein the details of the equipment which would ordinarily be employed in a large exchange for the convenience of the operators, bookkeepers, etc, charged with the duty of making the tempo rary electrical connections or the necessary changes in the entries of the accounts of the parties in accounting relation with one another. Such equipment is illustrated in detail in another application filed us July 21st, 1908, Ser. No. ie-L585. It has'been omitted from the present case in order that the collateral equipment, not forming part of the accounting apparatus proper, may

not be confused with the accounting apparatus itself.

The exchange equipment in practice will preferably include a switchboard at which the temporary connections for the ditl'erent accounting circuits will be made at one sideof the board suitable operators, while bookkeepers or others at the opposite side of the board may make the necessary entries of the settlements indicated by the lamps l 2, etc. The equipment may be analogous to that of a telephone exchange. The board will be divided into sections corresponding to. the different accounts, there being both debit and credit sections, the former carrying both debit components and debit indicaters or lamps, while the latter carries both credit components and credit indicators or lamps. These sections will usually be in the form of racks containing accounts in card form, which cards will show what accounts are owed by the debitsection and what are ,owing to the credit section. The components or jacks for controlling both accounting and indicating will usually be located at the front of the board. while the lamps for indicating will preferably be located at the back of the board. The racks themselves will usually 'be so arranged that the account cards may be placed in the racks in inclined positions, one above. the other, in such a manner that the state of the account on each card will show to the plugging-in operator at the bottom of the card. and to the bookkeeper stationed at the back of the board the slate of the account will usually slim Y at the top of the back of the same card. Moreover, the visible lower portion of the front of each, card will preferably be arranged'in line with "the particular accounting and indicating jacks corresponding to that account, while the upper portion oif the back of the card will be in line with the particular indicator or lamp at the back of the board corresponding to the same account. By employing collateral equipment ofthis kind in connection with the necessary apparatus of the accounting exchange proper the operator ri nlliilugg the teuuiorary connections has only'to look at the bottom of each card to determine the state of an account and whether a plug should. be inserted. while the .t the of the board has only 3, owing one another different amounts, No. amps, and if one of them is 1 sends in to the management of the excmes his duty-then to remove change, preferably in card form, his b ll x ning at the upper end of the against No. 2 for. say $5.00, No. 2 sends in 1e an account showing-in line hlS bill against No. 3 for say $7.25, and 7 oh ligl ited-lamp, and then make the No. 3 sends in his bill against No. 1 for .ii tment of the account and say $9.40. These bills or cards are turned k the iiguresboth at the bottomof the over to the bookkeeper at the back of the aid at the top of the back of said card, switchboard and are placedin their proper be necessary. By comparing the positions in the racks by the bookkeeper. d creditcards broughuinto account- As fast as the cards are placed in the racks, n he seesat once just which ac-- the -operator at the front of theswitche a such relatioma d what changes board will, by properly plugging in, est-abry to make in each account in lish the necessarytemporary electrical conkc the adjustment ofiacQounting nections between Nos. 1 and 2, Nos. 2 and 3, so nuicated-to him by the action of and Nos. 3 and 1 in the manner before detinting apparatus proper: In other scribed. Through 'the accounting circuit" when the apparatus has determined thus established current is caused to flow for bookkeeper 311st which accounts are to light the indicating lamps showing that in accountingvrelation it is a small matter the mechanism of the exchange has de- 35. for the bookkeeper to make on said cards termined that members Nos. 1, 2 and 3 are ti ecessary bookkeeping entries to bring. in accounting relation with one another. an adjustment of relations. The main Thereupon the bookkeeper will remove from he accounting apparatus proper the racks the three cards just specified, will the bookkeeper of the labor of cancel the bill of No. 1 against No. 2 for 0 which onesof a multiplicity of $5.00, will subtract $5.00 from the bill of nts are in condition for adjustment. No. 2 against No. 3 for $7.25 and restore as d," of labor between the mechathe card to its proper place in the rack "2 the exchange on the. one hand and with a balance of $2.25 appearing upon it, members of the exchange and the atand will subtract $5.00 from the bill of No. idant operators, bookkeepers, etc, on the 3 against No. 1 for $9.40 and restore this a. -or hand may be better understood from card also to its proper place in the rack a conrpl 'l'e example illustrating the manwith a balance of $4.40 appearin upon it. nor in which accounts are settled. The first T he canccled bill of No.1 against o. 2 will 35 requisite is that each member of the exnot, however, be restored to the r'ackJ: On log change n l management of the exthe removal of these cards from the racks itement of his bills rethe operator at the front of the switchboard idual bills showing the withdraws the plugs, breaks the circuit just sits due him. These bills are sent to described, and the indicator lamps are aune u .nagement of the exchange. instead of tomatically extinguished. When the secdebtors in order that they may be -etend and third cards are rcstorcd'to the racks 1} the conjointaction of the mac aawith the newbalantes showing,the operan ot the exchange and the attendant tor reestablishes the second and third sets The bills may be made out by of connections just described, but does not :al members on the cards of the reestablish the first set of connections, and (:QYQYlOllSlY described), or debit no circuit will be closed until the accounts t cards showin the persons to and of another group are brought into accountwhom accounts are due, and the ing relation.

s of the same, may be made out by The plugging-in and bookkeeping operaamour bedtim iers of the exchange. In-e1ther trons ust described will be repeated at short ,115

cards will thenusually be placed intervals as cards are inserted in and relehit cards in debit racks and moved from the racks, and accounting circar in credit racks, all arranged, cuits will. be closed and broken in rapid iv, in. the manner before described. succession; and after each circuit has been cardsare placed in the racks closed the proper cancellation or deductions 1 boo secpers, the plugging-in oper will be made. It will be obvious that, with or in with their jacks and. a large exchange, practically all of the memir 'wly co est debit and credit com- ,bers of which are doing business with one nting each pair of-members another, the-offsetting of accounts and the 13. card to he in accounting recancellation or deduction of obligations may 126 each pair of members one proceed very rapidly, and all oft-he balances as shown by such card, owes a due on transactions represented b the bills 1 brought into the exchange may he settled is the simple case bepromptly throughthe conjoint act-ion of the members llos. 1,2 and mechanism of the exchange. and the opera,-

sets.

I counting com comprising a series tric accounting circuit a plurality of pairs of differentiated components of difierent 16. An electrical accounting exchange, comprising a series of sets of electrical .ac counting components each set embodying positive and negative components, and

meansfor selectively connecting in an elec-v circuit a plurality of airs trio accountin I negative compone'ntso difof positive an ferent sets.

17 An electrical accounting exchange,

comprising a series of sets of electrical acerentiated' components, an

electrically-di an elecmeans for selectively connecting-in trio accountingcircuit a pluralit. of differentiated components 0 sets, the first and'last elements of countin circuit are nents o the same set. 18. An electrical different which acaccounting exchange, of sets of electrical accounting components each set embody'in positive and negative components, an means for selectively connectin in an electric a'ccountin circuit a pluraity of airs of positive an negative comp difie'rent sets, the first and last elements of which accounting circuit are positive and negative components of the same set.

19. An electrical accounting exchange,

sets of electrical accomprising aseries of each set embodying counting com onents, electrically-di for selectively connecting inan electric accounting circuit a plurality of pairs of differentiated components of different sets, and

means for indicating the completion of said accounting circuit. 20. An electrical accounting 1 exchange, comprising a series of sets of electrical accounting com I electrically-di erentiated components, means for selectively connecting in an electric accounting circuit a plurality of pairs of differentiated components of different sets, and means controlled by the completion of said accounting circuit for indicating the comeiit sets and for counting circuit 21. An comprising a series 0 pletion thereof. a 1

electrical accounting; exchange,

sets of electrical accounting com ioneiits, each set embodying ilcctrically-di erentiated comp nents, and means for temporarily connecting electrically into an accounting pair any two electi'ically-differentiated components of differconnecting in an electric ac: a plurality of such accounting pairs.

. 22. An electrical accounting exchange, comprising a series of sets of electrical accounting coniponents each set embodying positive and negative components, and means for temporarily connecting. electriconnecting e ectrically two electrically-,difierentiated comonents, each set embodying of pairs positive" and negative cg np dilferentiated compoand-plug connections for'temporarily conset embodying erentiated components, means onents, each set embodying and manually cally into an accounting pair any two positive and negative components or different sets and for connectin in an electric accounting circuit a plura ity of such accounting pairs.

23. An electrical accounting exchange, comprising a seriesof sets of electrical ac counting com or ents, each set embodying electrically di erentiated components, an

cord and-plu connections for temporaril into an accounting pair any 'nents'of different sets 'andfor connecting in an electric accounting circuit a plurality. of such; accounting pairs. a 24. An electrical accounting p is ng Serws ct sets at aectrical acnting mp nents, eachv emb dy g scents; and 0 ncctifng electrically into an accounting pair any two positive and negative components of di'flerent sets and for'connecting inv an electric accounting cirouit a plurality of such accounting pairs. p 25. An accounting exchange, comprisinga series of sets of accounting climponentgeach operative for selectively grouping a plurality of airs of debit and credit components of different sets.

e chang debit and credit components; and manual and automatic means conj m y i 26. An accounting exchange, comprising a series of sets of. accounting components, each set embodying debit and credit components, and manual and automatic means conjointly operative for selectively grouping a plurality of airs of debit and credit components of diiferent sets to form an account-in chain the first and last elements of whic are debit and credit components of the same set. I

27. An accounting exchange, comprising a series of sets of accounting components, each set embodying debit and credit components,

electrical means conjointly operative for selectively grouping a pluralit of pairs of debit and credit components oi". diiierent sets.

28. An accounting exchange, comprising a series of sets of accounting components, each set embodying debit and credit components,

manual and automatic means conjointly op erative for of pairs of and automatically operated manual and automatic electrical means con- :lOHltl) operative tor selectively grouping a [plurality of pairs of differentiated components of different sets.

30. An. electrical accounting exchange,

comprising a series of sets of electrical accounting components, each set embodying electrically-differentiated components, and

manual and automatic electrical means con-- jointly operative for selectively grgnuping a plurality of pairs of (lifi'erentiated com!- ponentsof ditlferent sets to form an accounting circuit the first and lastvelemen'ts of como long a series'of setsolj/Te lectrical accounting components, each ,set embodying positive negative components,- and manual and automatic electrical means con.- jointly operative for selectively grouping a plurality of pairs of positive and negative components of tlifierent sets.

33,An electrical accounting exchange,

acom'prising a series of sets of electrical accounting components, each set embodying positive and. negative components, and manual and. automatic electrical means conjointly operative for selectively grouping a plurall of pairs of positive and negative compo: nts of different sets to form an accircuit the first and last elements of whim are positive and negative compo-- nents of the same set.

34. An electrical accounting exchange, comprising a series of sets of electrical accounting components, each set embodying positive and negative components, manual and automatic electrical means conjointly operative for selectively grouping a plurality of pair" of positive and negative components or tlifierent sets to form an accounting circuit the first;and last elements of Which are positive and negative-components of the same set, and means controlled by such automatic means for indicating the existence of said accounting circuit.

35. An electrical accounting exchange comprising a seriesof sets of electrical accounting components, each set embodying positive and negative components, an manual and automatic electrical means con- .operative forselectively connecting'in an exchange,

jointly operative for selectively connecting in an electric accounting circuit a phlrality f pairs of positive and n g components of different sets.

36. An electrical accounting, exchange, comprising a series-of sets of'electrical accounting components, each set embodying positive and ncgati\'*e,compo1ients, manual and. automatic electrical means conjointly electric accounting circuit a pluralityot pairs of positive and negative components of different sets, and means controlled by such automatic means" on. the closing of said accounting'circuit for'intlicating the closure of said circuit.

37. An electrical accounting exchange, comprising a series of sets of electric accounting components, each set embodying two electrically differentiated components, means for selectivelyconnecting in a dead accounting circuit a plurality of'pairs of difierentiateclcomponents of different sets, and .mcansifor electrically energizing said circuit on the completion of the same.-'

38. An electrical accounting exchange,

comprising a series of setsofelectrical accounting components, each set" embodying positive and negative components, means for selectively connecting in a (lead accounting circuit a'pluralityof pairs ofp'ositi've and negative components of diflerent sets, and means for electrically energizing said circuit on the completion of the'sa'me.

39. An electrical accounting exchange,

comprising a series of setsof electrical accounting components, each set embodying two, electrically-diflerentiated components, means for selectively 'c onnecting in a (lead accounting circuit a plurality of pairs of tlitt'erentiated components of different sets,

and automatic meansfor electrically energizing said circuit on the completion of the same.

40. An electrical accounting exchangm'no comprising a series of sets of electricahaccounting components, each set embodying two electrically-clilferentiated components. means for selectively connecting in a dead accounting circuit a plurality of pairs of 1 5 differentiated components of different sets,

and automatic means including a'frotary switch forelectl'ically c'ncrglzm' said circuit on the completion of the same.

41. An electrical accounting exchange, 12

comprising a series of sets ofielectrical accounting components, each set embodying electrically-diifiercntia ted components, means for selectively connecting in an electric accounting circuit a plurality of' pai'rs of litferentiatetl components of" different" sets, and an elec tro-selective device responsive only to current passing through such an' accounting circuit.

42. An electrical accounting exchange,

; accounting circuit.

j 5 ing sets, an electro-selective comprising a series trolled 43. Anelectrical accounting exchange, comprising a series of sets ofelectrical' accounting components 'each set embodying ositive and negative components, means or selectively connecting in an electric accounting. circuit a plurality of pairs of positive and negative components of difierent sets",- and a polarized magnet responsive. only' to current passing in one direction through such accounting circuit.

-44. An electrical accounting exchange, comprising a series of sets of electrical accounting com orients, each set embodying electrically-(ii erentiated components, means for selectively connecting in an electric accounting circu t a pluralityof pairs of difierentiated components of diife-rent device responsive only to current passing through such an accounting circuit, and an'indicator controlled .by.said electro-selective device.

accounting exchange, of sets of electrical accounting components each set embodying vpositive and negative components, means for 45, An electrical selectively connecting in an electric account ,ing circuit a plurality of airs of positive and negative components 0 different sets, a

polarized magnet responsive only to current count-in I circuit, and an indicator con- Ey said polarized magnet.

46. An electrical accounting exchange, -comprising a series'of sets of electrical accounting com nents, each set embodying electrically-di erentiated components, means for selectively connecting in an electric accounting circuit a plurality ofjpairs of 'differentiated components of diflierent sets, an electro-selective device retponsive only to current passing through s ch anaccounting circuit, and an electric ligl t circuit containan indicatinglamp and controlled by said electro-selective device.

47. An electrical accounting exchange, comprising a series of sets of electrical accounting components each set, embodying positive and negative components, means for selectively connecting in'an electric account ing circuit a plurality of pairs of positive and negative components of different sets, a

polarized magnet responsive only to currentpassmgdn one direction through such an accounting circuit, and an electric light circuit containing an indicating lamp controlled by said polarized magnet.

48. An electrical accounting exchange, comprising a series or sets of electrical accounting com or ents, each set embodyin electrically-di erentiated components, an means for selectively connecting a .pair of electrically-diiferentrated difierent' sets,- current-selective indicators one for each set of accountin components, and means for subjecting sai indicators to electricataction ofdiiierent kinds.

49. An electrical accounting exchange, comprising .a series of sets of-electrical ac-- counting components each set embodying positive and negative components, and means for selectively connecting a pair of positive and negative components of different sets, polarized indicating means one for each set of. accounting components, and means for subjecting said. indicating means to the action of electric current flowing in either di rection.

50. An electrical accounting exchange, comprising a series of sets of electrical accounting com onents, each. set embodying electrically-xii erentiated components, means for selectively connecting in an electric accounting circuit a plurality of pairs of differentiated components of difierent sets, current-selective indicators one 'for each setof accounting components, and means for subjecting said indicators to electrical action. of different kinds.

components of 51. An electrical accounting exchange,

comprising a series of sets of electrical accounting components each set embodying positive and negative components, means for selectively connecting in an electric accounting circuit a plurality of pairs of pos1- tive and negative components of different sets, polarized indicating means one for each set of accounting components, and means for subjecting said indicating means to the action of electric current flowing in either direction.

52. An electrical accounting exchange, comprising a seriesof sets of electrical accounting components, each set embodying positive and negative of terminals, positive and negative respectively, one terminal for each of said positive and negative components, cii'cuit-ciosing' components, two sets means embodying positive and negative contacts adapted to move over said sets of terminals respectively, and sectional conductors for selectively connecting in an electric accounting circuit a'plurality of pairs of differentiated components of different sets and their corresponding, terminals.

53. An electrical accounting exchange, comprising a series of sets of electrical accounting components, each set embodying positive and negative components, two sets of terminals, positive and negative respectively, one terminal for each of said positive and negative components, circuit-closing for selectively connecting in an electric ac' counting circuit a plurality ct pairs of dift'erentiaied components of diilerent sets and their corresponding terminals. and md1cat-' mg means responsive only to current passingv in one direction'through such accounting circuit.

54. An electrical accounting exchange, comprising a series of sets of electrical accounting components, each set embodying positive and negative components, two circuits of terminals, positive and negative respectively, one terminal for each of s ald positive and negative components, rotary circuit-closing means embodying pos1tive and negative contacts adapted to move over said sets of terminals respectively, and sectional conductors forselectively connecting in an electric'accounting circuit a plurality of pairs of differentiated components of different sets and their corresponding'terminals. An electrical accounting exchan e, comprising a series of sets of electrical accounting components, each set embodying electrically-differentiated components, and. meansfor selectively connecting up, one at a time. as many different electric accounting circuits-each containing a plurality "of ac counting-pairs each consisting of differentiated components of difierent sets-as there are possible permutations of such accountmg pairs.

56. An accounting exchange, comprisinga series of sets of accounting components, each set embodying debit and credit components, means for selectively grouping a plurality of pairs of debit and credit components of difi'erent sets to form an accounting chain the first and last elements of which are debit and. credit components of the same set, a continuously-mtwable element, and means controlled by said accounting chain for stopping said element.

57. An electrical accounting exchange, comprising a series of sets of electrical accounting components,'each, set embodying elcctrically-differen ti ated components, means for selectively connecting in electric accounting circuit a plurality of pairs of differentiated components of difl erent sets. a continuousl movable element, and means controlled by said accounting circuit for stopping said element.

58; An electrical accounting exchange, comprising a series of sets of electrical accounting components, each set embodyingelcctricallydifi'erentiated components, means including a continuously-movable switch for selectively connecting in an electric accounting circuit a plurality of pairs 'oi difi'erencomponents of different sets, and

for stopping said s witch. 59. An accounting exchange, comprising a means controlled by said accounting circuit seriesof sets of accounting components, each set embodying debit and creditcomponents,

means for selectively groupingapluralityiof; pairs ofdebit ancl credit components of dif: r ierent sets to forman,accOunt-mgch'am the first and last elements of ivhichiare debit; and creditcomponentjs of the samejset, a con tinuously-movable element, and ,m-eans con trolled by the completionof sa d accounting.

chain for stopping said continuouslymayable. element andalso controlled by the ina v terruptionof such chain ,for". starting sai element.

60. Anelectrical accounting. comprising a series of sets ofclectrical accounting components, each Set embodying electrically-difi'erentiated components, means for selectively connecting in an electric accounting circuit a plurality of pairs of differentiated components of different sets, a continuously-movable element, and means controlled by the closure of the accounting circuit for stopping said continuously-movable element, and by the opening of said accounting circuit for starting said continuously-movable element;

61. An. electrical accounting exchange, comprising a series of sets of electrical accounting components, each set embodying electrically-chfierentiated components, means including a continufiusly-movable switch for selectively connecti ,3; in an electric accounting circuit a plurality of pairs of differentiatedcomponents of different sets, and means controlled by the closure of said accounting circuit for stopping said switch, and ,by the mg said switch.

62. An electrical accounting exchange, comprising a series of sets of electrical acopening of said accounting circuit for startexchange, I

counting components, each set embodying.

electrically-(llfierentiated components having associated therewith an individual resistance, means for selectively connecting in an electric accounting circuit a. plurality of pairs of differentiated components of different sets, and means for controlling eii her resistance in accordance with variations'in the total value of said individual resistances in said accounting circuit.

63. An electrical accounting exchange,

, comprising a series of sets of electrical accounting components. each set embodying electricallv differentiated components having associated therewith an individual resistance. means for selectively connecting in .an 'electricaccounting circuit a plurality of 'pairs of difi'erentiated components of different sets, and means governed by'the total value of the individual resistances in an accounting circuit for controlling the resistance of such circuit.

they a'recooperatively associated with e 64. An-accounting exchange,. comprising] a series of sets of accounting components, each setembodying debit and credit components, and means for efiecting cooperation. of anytwo debit and credit components of difl'erent sets, and means for testing the components of each-set to. determine whether; component of any other set. I ,3

65. An electrical accounti'ng exchange; comprising a, seriesof sets of electrical accounting com onents, each set embodying electricglly-di erentiated components means for electrically connecting any two eiectric whether they a component of any other set.

ally-differentiated components of difiere'nt 15 v sets, and means for electrically testing the components 7 of each set to 'determine are electrically connected with Signed at New York, in the county of 20 New York and 'Stateof -New York, this 30th da iJanu 1- A. -D. 19os.' WILLIAM'F.KEMBLE. i CHARLES UNDERHILL.

Witnesses: I

.. EDGAR A. Fnnmws, ROBERT Cnsumon. 

